FAQs
Here are some Frequently Asked Questions regarding the Small Business Relief Grants Program. New information will be added as it becomes available. Please check back frequently.
We list an email at the end if your question is not addressed here, but due to the large volume of interest in this program, we may not be able to respond to every inquiry promptly.
When and how do I apply?
Applications closed July 2 at 5:00 p.m. Applications for the Small Business Relief Grant Program are no longer being accepted.
Can I send in a paper or email application?
No. Due to the large volume of applications, we can only accept applications submitted through the online form.
I clicked "Submit" on my application and the screen message said, "Thank you for completing our survey." Did you receive my application? Can I get an email confirmation?
Yes, we received your application. When you fill out the application and click submit, you will receive a default notification from the software we are using to collect application information that says, "Thank you for completing our survey." This means we’ve received your application. Unfortunately, we’re not able to provide an email confirmation or reference number.
I started my application but didn’t complete it and left the website before clicking submit. Can I go back and start where I left off?
No. You are welcome to start again, complete a new application and submit it.
I completed the application and submitted it, but I either made a mistake or I need to update it. Can I go back and change my information?
Unfortunately, you are not able to go back and change your application. However, you can submit another application and your previous application will be disregarded.
I accidentally submitted more than one application. Will I be disqualified?
No. However we can only accept the last application you submitted. Any applications you submitted prior to the last one you submitted will be disregarded. Please do your best to avoid submitting more than one application.
Does it matter when I submit my application?
No. As far as your odds of getting an award, it doesn’t matter at all – as long as you submit it before the deadline (5 p.m. Thursday, July 2). However, it is advisable not to wait until the last minute. The system is designed to handle a high number of applications at one time, but there is a limit on how many it can handle.
I need help filling out my application. Where can I get help?
The statewide network of Small Business Development Centers are available to provide professional expertise and guidance. Find your local SBDC. They will provide application assistance free of charge.
You may use any other assistance provider you wish, but no assistance provider, whether free or fee-based, can guarantee you will receive a grant or that your chances of receiving a grant through the random selection process will be improved.
I need the application translated into another language. Where can I get help?
We will be providing Spanish, Hmong and Somali versions of the information and application to use as a guide for filling out the online application. You will still need to fill out the application using the online form.
Paper or emailed applications will not be accepted.
Who is selecting the winners? How will selections be made?
Per the authorizing legislation, grants will be awarded through a lottery (i.e., a randomized selection process). This process will be conducted by the Minnesota Department of Employment and Economic Development (DEED) in consultation with the Minnesota Lottery or with assistance from the Minnesota Lottery and will be observed by an independent third party. The methods, procedures and certification of fairness of the selection process will be posted publicly on this website.
Businesses that are majority-owned by military veterans, women, and ethnic or racial minorities; employ 6 people or fewer; and/or were significantly impacted by Executive Orders (i.e. with their operations restricted to 50% or less of normal capacity) on May 18, will receive priority considerations in the selection process.
Are nonprofit organizations eligible for this program?
No. Only private for-profit businesses are eligible for this program.
Are cooperatives eligible for this program?
If cooperatives are structured to generate and distribute profits for the benefit of members or owners, they are eligible for this program.
I represent an operator of a cultural mall. Where do I apply for the $250,000 Cultural Mall Operator Grant?
The application process for the Cultural Mall Operator Grant is a separate application from the Small Business Relief Grant. The application is now available.
NOTE: Cultural malls are indoor retail and food markets with an ethnic cultural emphasis.
I am a tenant of a cultural mall that is applying for and may receive a Cultural Mall Operator Grant. Can I still apply for a $10,000 Small Business Relief Grant?
If you meet all the other requirements of this program, you are eligible to apply for a Small Business Relief Grant and you are encouraged to apply. However, you can only receive one grant, either as a subgrantee through the Cultural Mall Operator Grant or as an applicant through the Small Business Relief Grant.
If the cultural mall in which you are a tenant is a recipient of an operator grant - and if you were awarded a small business relief grant - the grant administrator will work with you and them to ensure there is not a duplication of awards for your business.
My business leases space within the permanent physical location of another business (for example, a chair in a barbershop or a store within a mall, etc.). Is this considered a permanent physical location?
Yes.
I am a resident of another state, but my business has a permanent physical location in Minnesota. Is my business eligible for this program?
No. The majority ownership of a business must be owned by one or more permanent residents of Minnesota.
What is the definition of "permanent resident of Minnesota"?
For the purposes of this program, "permanent resident of Minnesota" means "resident" as defined by Minn. Stat. 290.01. The term "resident" means any individual who is domiciled in Minnesota or is domiciled outside the state who maintains a place of abode in the state and spends, in the aggregate, more than one-half of the tax year in Minnesota, unless the individual or the spouse of the individual is in the armed forces of the United States.
The term "abode" means a dwelling maintained by an individual, whether or not owned by the individual and whether or not occupied by the individual, and includes a dwelling place owned or leased by the individual’s spouse.
If I am selected to receive a grant, what information will I be asked to show to verify I am a permanent resident of Minnesota?
You may be asked by your grant administrator to show proof of residency in the form of a utility bill, tax form, driver’s license or some other acceptable form of information as determined by the grant administrator. You do not need to provide these documents with your application.
I am a permanent resident of Minnesota, but my business has a permanent physical location outside of Minnesota. Is my business eligible for this program?
No. Businesses are required to have permanent physical location in Minnesota.
I am a permanent resident of Minnesota and I live in the 7-county metro area, however my business is physically located outside of the 7-county metropolitan area. How does this affect my application for a grant?
Your application will be considered as an application originating from where the business is physically located. If you are awarded a grant, your grant will be assigned to a nonprofit administrator located in Greater Minnesota.
I am a permanent resident of Minnesota and I own more than one business and at least one is located in the 7-county metropolitan area and another one is located in Greater Minnesota. Can I submit separate applications for each business, and can my businesses be eligible for separate awards?
An individual business owner should only submit one application and cannot receive more than one grant regardless of how many separate businesses they own or how many business locations are a part of their business(es).
How do I know if I am in good standing? What does "in good standing" mean?
"In good standing" means that your business is current and active with any required business registrations with the Office of the Secretary of State as of March 1, 2020 and that no Minnesota tax liens have been filed against your business with the Minnesota Secretary of State.
You can look up your registration. Please have your file number available when filling out the grant application.
Note that, depending on your business structure, you may not be required to be registered with the Secretary of State. In that case, you will be deemed "in good standing" with the Minnesota Secretary of State. For example, if you are a sole proprietorship operating under your own name, you do not have to be registered with the state.
What if my business was not in good standing on March 1, but since then, my business no longer has any Minnesota tax liens and/or I renewed my required business registration with Secretary of State? Is my business eligible for this program?
No. Per law, your business has to be "in good standing" on March 1 to be eligible to receive a grant from this program.
Do I need to show that my business is "in good standing" when I apply for a grant?
For the purposes of the grant application, you only need to attest you do not have a Minnesota tax lien filed against your business and that, if required, your business registration with the Minnesota Secretary of State is current as of March 1, 2020. If you are selected for an award, you may be required to provide additional information verifying the tax status of your business.
I don’t know if I have a tax lien against my business. How do I find out?
You can visit the Office of the Secretary of State website to look for tax lien filings.
My business is a home-based child care provider. Do I need to be registered with the Secretary of State to be eligible for this program?
Not necessarily. If your business operates under your own name and not an assumed named or an LLC, S corporation or other business formation, you do not need to be registered with the Secretary of State. If you are not required to be registered, you will be considered "in good standing" with the Secretary of State for the purposes of this program.
Are municipal liquor stores eligible for this program?
No. This program is limited to private for-profit businesses.
How is financial hardship defined? What level of financial hardship must my business demonstrate to qualify for this program?
Financial hardship has two alternative definitions: Either 1) your business experienced 10% revenue loss year-over-year between March 1 and May 31, 2019 vs. 2020 or 2) your business was restricted from operating above 50% capacity by executive orders in effect on May 18, 2020. Meeting one or both of these conditions is sufficient to meet the criteria of experiencing financial hardship as a result of the COVID-19 outbreak.
I started my business after May 31, 2019. I am unable to compare revenues between March 1 and May 31 of last year and this year. Am I eligible for this program?
If your business was started after May 31, 2019 but was in operation on May 18, 2020 and your business was restricted from operating above 50% capacity by executive orders in effect on May 18, 2020, you are eligible for this program.
How is revenue defined? My business often doesn’t get paid for work until 2-3 months after we complete it.
For the purposes of this program, we can accept either accrual or cash basis accounting when calculating revenues over the relevant time period. Whatever method is used, it should be consistent between the two years being compared.
I received forgivable loans, grants, and/or Pandemic Unemployment Assistance (PUA) between March 1 and May 31, 2020. Do I count these as revenue for this program? What if these funds were sufficient to make up for any revenue losses I experienced during this time period?
Generally, yes, you should count the proceeds of forgivable loans, PUA benefits, or grants as revenue. If this revenue was sufficient that your business did not experience at least a 10% revenue loss year-over-year between March 1 and May 31, 2019 vs. 2020, then your business should not apply to this program.
I am self-employed. I received – or am receiving – unemployment benefits through the Pandemic Unemployment Assistance program. Am I ineligible for this program?
Not necessarily. However, your business must meet all other eligibility requirements, including demonstrating financial hardship after factoring PUA benefits into your self-employment revenue.
Can my business receive more than one grant?
No. You can only receive one grant per business.
I own or I am part-owner of multiple businesses that could be eligible for an award. Can each of those business apply to receive a grant?
No. If you own more than a 20% stake in more than one business only one of the businesses you own can apply and be eligible to receive an award.
I own a business with multiple locations. Can each of the locations be eligible to apply and receive a grant?
No.
Does my home-based business qualify as "permanent physical location?"
No. Home-based businesses are not considered eligible for the Small Business Relief Grants Program – with the exception of home-based licensed child care providers, which are eligible.
What is the definition of a home-based business?
According to IRS Publication 587 a home-based business is one that uses the owner’s home (or space within the home) as its principal place of business. That is:
- It is used regularly and exclusively for administration or management of a trade or business, and
- The owner has no other fixed location where the business carries on a substantial amount of administration or management.
I am self-employed and/or an independent contractor. Am I eligible for this program?
Yes, as long as your business has a permanent physical location and your business is not considered a home-based business (unless it is licensed family child care facility). Otherwise you are not eligible.
Besides myself, my business does not have any employees. Am I eligible for this program?
Yes.
My business has zero employees and/or hires independent contractors for some of its functions. Am I eligible for this program?
Yes
My business employs more than 50 employees but they all are employed part-time. Am I disqualified from this program?
Not necessarily. This program is limited to businesses with 50 or less full-time equivalent employees (FTE). Please consult with a tax or accounting professional on how to calculate the number of full-time equivalent employees your business employs.
My business only employs part-time employees. Am I disqualified from this program?
No.
I am self-employed or an independent contractor, but my work is performed at the permanent physical location of another business. Am I eligible for this program?
No. For the purposes of this program, your businesses does not have a permanent physical location and is not eligible for this program.
My business is a home-based business that is a licensed child care provider. Am I eligible for this program?
Yes. Licensed child care businesses are exempted from the home-based business exclusion.
What is the definition of "permanent physical location"?
By law, only businesses with a permanent physical location in Minnesota are eligible for this program. For the purposes of this program, permanent physical location means a non-mobile permanent facility such as an office, warehouse, storefront or other facility where the business carries on a substantial amount of administration or management of their business.
Businesses that operate exclusively through a mobile operation, such as a mobile food stand, food truck, etc., are not considered as having a permanent physical location.
Facilities that are in the home, in a space within the home, or in a structure on the same property as the home of the business owner are considered a home-based business. Home-based businesses are ineligible for a grant from this program, except licensed child care providers.
For the purposes of this program, for-profit farming operations as defined by Internal Revenue Code 183 are not consider home-based businesses.
Are for-profit farming operations considered home-based businesses?
No.
My business is a for-profit farming operation. Am I eligible for this program?
Yes. If you are selected to receive an award, you may be asked for information that verifies your farm is operated for profit and is not a so-called "hobby farm."
My business is a minority business enterprise and my business is also owned by a women. How does my business falling under multiple categories for prioritization affect my odds of getting a grant?
Per the authorizing legislation, a minimum amount of money must be awarded to businesses in the following categories:
- $18 million for businesses with six or fewer full-time workers
- $10 million for minority business enterprises
- $2.5 million for businesses that are majority owned and operated by veterans
- $2.5 million for businesses that are majority owned and operated by women
- $2.5 million for operators of indoor retail and food markets with an ethnic cultural emphasis.
If your business falls under multiple categories, your business will be in a drawing for each category in which it qualifies. You can only receive one award.
For example, your business will be included in the randomized selection for awards to women owned businesses. If you are not awarded under that category, your business will be included in the randomized selection for minority business enterprises. If you are not awarded under that category, your business will be in a final general round that includes all eligible businesses that have not been selected for an award.
Do I have to have a certification showing that my business is a minority business enterprise, or a veteran or women owned business to apply for this program?
No. If you disclose that your business may qualify under those categories, you may be required to provide additional information confirming the status of your business before receiving an award. Any official certification you received can be used as documentation, but it is not required to have this certification.
I do not want to disclose my status as a minority business enterprise, veteran or woman owned business. Am I required to?
No. However, if you are a minority business or a veteran or woman owned business – and you want your business to be considered in the drawings for funds set aside for those businesses – you will need to indicate that on your application.
What is the definition of a Veteran being used to be eligible for the veteran-owned business grant?
Veterans must meet the definition of a veteran as stated in Minn. Stat. 197.447 that states a Veteran is:
- A citizen of the United States or a resident alien
- Separated under honorable conditions from any branch of the armed forces of the United States
- Served on active duty for 181 consecutive days or by reason of disability incurred while serving on active duty, OR:
- Met the minimum active duty requirement as defined by Code of Federal Regulations, title 38, section 3.12a, OR
- Has active military service certified under section 401, Public Law 95-202 certified by the United States secretary of defense as active military service and a discharge under honorable conditions must be issued by the secretary.
For more information, visit the MDVA website.
My business was restricted from operating at full capacity by executive order. How does this impact my chance of getting a grant?
If your business was restricted by executive orders to operating at 50% or less of normal capacity as determined by the fire marshal on May 18 you will qualify for a priority designation for an award. Business that qualify for that designation will be drawn for first through the randomized selection process - assuming they meet all the other eligibility requirements.
This includes the following categories of businesses:
- Retail
- Restaurants and bars
- Personal services (salons, tattoos, barbershops)
- Gyms, personal fitness and yoga studios, martial arts
- Indoor events and entertainment
- Outdoor events and entertainment (not including drive-in facilities)
- Organized sports (adult and youth)
- Places of worship, religious services, weddings, and funerals
- Campgrounds and charter boats
- Pools
Please refer to staysafe.mn.gov for a helpful guide to businesses impacted by Executive Orders on May 18 (see Stay Safe Grid).
When will I know if I have been selected for a grant?
We expect to notify grant winners in mid-July. You will receive an email from the Minnesota Department of Employment and Economic Development notifying you of the award.
If I win a grant, how will I get grant funds?
Once you have been selected, your grant will be assigned to one of 17 nonprofit organizations that will administer the award and provide you the funds. Assignments will be based on geography and/or language preferences of the awardee.
If I am not selected for a grant, will I be notified?
We will attempt to notify all applicants who provided an email address about the status of their application. However, due to the large volume of applications, we may not be able to get to everyone quickly.
What documentation will I be asked to provide?
After you have been selected for an award, you will be asked by your award administrator for documentation that verifies you are eligible to receive a grant. Some examples of documentation you may be asked to provide include – but are not limited to – the following: sales tax reporting, period statements from third-party sales platforms, merchant services statements, point of sale or register reports, third-party payroll processor reports, federal form 941/employer's quarterly federal tax return, or other state or federal payroll-related filings.
Who are the organizations that will be providing the award? Do I have to go through them to get the grant?
Due to the large volume of applications and awards, DEED is partnering with these organizations to administer and disburse the awards. These organizations are mandated by law to administer these funds. Nonprofit administrators will be assigned grant awardees based on geography, capacity, and/or language needs of awardees.
7-County Metro Area
- African Development Center
- African Economic Development Solutions
- Central Minnesota Development Company
- First Children's Finance
- Hmong American Partnership
- Latino Economic Development Center
- Metropolitan Consortium of Community Developers
- Metropolitan Economic Development Association
- Neighborhood Development Center
- Northside Economic Opportunity Network
- WomenVenture
Greater Minnesota
- Initiative Foundation
- Northland Foundation
- Northwest Minnesota Foundation
- Southern Minnesota Initiative Foundation
- Southwest Initiative Foundation
- West Central Initiative
If I am selected, what kind of documents will I have to sign to get this grant money?
You will have to sign a document certifying you are eligible to receive this grant and that the grant will be used for eligible uses only.
What can the funds be used for?
Grant funds shall be used for working capital to support payroll expenses, rent, mortgage payments, utility bills, and other similar expenses that occur or have occurred since March 1, 2020, in the regular course of business. All uses must be exclusively for Minnesota operations.
Can the funds be used to pay business-related insurance deductibles?
Yes.
Can the funds be used to repair my facility or equipment?
Yes.
Can the funds be used to purchase equipment?
No. Grant funds shall be used for working capital expenses that occur in the regular course of business. The purchase of equipment is not regarded as a working capital expense.
Can the funds be used to pay back taxes including property taxes?
No.
Under any circumstances will I have to pay the grant back?
This is a grant - not a loan - and you will not be required to pay it back. However, the state reserves the right to audit the use of funds and may conduct an audit check on a random selection of grant recipients. Grant recipients who are found to have violated the terms of the application process or grant agreement may be required to refund the state.
I run a nonprofit organization that provides assistance to small business owners. How can I help? Can I participate in administering awards?
You can share information about this grant opportunity to your clients and customers and offer to assist them in completing their application.
Unless your organization is one the named organizations in the legislation, you are not eligible to administer awards.
Is the amount of the grant taxable to the recipient business?
Please consult your accountant, lawyer, or other tax advisor. DEED is unable to provide tax advice.
I am self-employed, and I’m receiving unemployment benefits through the Pandemic Unemployment Assistance Program. If I receive a grant from this program, how will that affect my unemployment benefits?
Please refer to Unemployment Insurance rules and procedures for how to report a grant as income when you request your weekly benefit.
What kind of businesses can not apply for a grant through this program?
The following businesses would not be eligible:
- a business manufacturing, distributing, selling or conducting related activities of sexually explicit materials;
- a business that derives income from passive investments without operational ties to operating businesses;
- a business whose activities are primarily focused on speculative activities that develop profits from fluctuations in price rather than through the normal course of trade;
- a business that earns more than half of its annual net revenue from lending activities;
- a business engaged in pyramid sales, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants;
- a business engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted; and
- a business engaged in gambling enterprises, unless the business earns less than 50% of its annual net revenue from lottery sales;
- any home-based business that is not a licensed child care provider.
Do I have to create or retain jobs for a grant?
No, there are no job creation requirements for the Small Business Relief Grants.
Can the funds be used for business acquisition and/or the purchase of land or building?
No, these uses were not approved by the legislature.
How long will this program last?
The Minnesota State Legislature has approved this as a one-time small business relief program. All funds must be disbursed by Dec. 31, 2020. We expect all funds to be disbursed by mid-August.
I applied for and received a grant from another source (local or city government, nonprofit, foundation, etc.). Can I still receive a grant from the state through this program?
Yes.
I received a Paycheck Protection Program loan or an Economic Injury Disaster Loan (or any other federal SBA loan or grant, including an EIDL Advance). Am I still eligible for a grant from this program?
Yes.
If I receive a grant from this program, how does that affect my Paycheck Protection Program loan?
Please refer this question to your PPP loan servicer or financial advisor.
I received a Small Business Emergency Loan Program (SBEL) loan. Can I still receive a grant through this program?
No. Under the legislation, businesses that received SBEL loans are not eligible.
I still have questions and I am not finding answers in this FAQ. Where do I send my questions?
You can send your questions to smallbusinessgrants@state.mn.us. We will be reading all questions that come in and updating the FAQ as quickly as possible. Due to the large volume of inquiries, we may not be able to respond individually to each question in a timely manner.
